Gyeonggi Province on Brink of Financial Crisis: Fund Depletion Hits Alarming 1.5 Trillion Won Mark
Gyeonggi Province’s Funds Seriously Depleted
Gyeonggi Province’s funds are facing a severe depletion, sparking concerns over the province’s financial management.
During the review of the first supplementary budget for 2024, Rep. Lee Young-bong, a member of the Provincial Assembly’s Public Safety and Security Committee, pointed out that the fund created by the province is quickly being depleted. He emphasized that the province should fulfill its obligation to create the fund as stipulated by law.
A fund refers to financial resources prepared to ensure the continuous and stable operation of a specific field or business. However, the province submitted a fund proposal of 4.1882 trillion won, which is 185.4 billion won less than the original budget, as the first supplementary budget for 2024.
The lawmaker criticized the significant decrease in the fund, which was at the level of 5.7156 trillion won in 2021 and has decreased to 4.2 trillion won in 2024. He urged the province to fulfill its obligation to raise funds as stipulated by law.
Moreover, the Urban Housing Environment Improvement Fund, which was worth 21.4 billion won in 2020, is expected to decrease to 170 million won in 2024, effectively depleting it. This is despite the law stipulating that the fund be financed by development burden fees and a portion of property taxes collected in accordance with the ‘Act on Recovery of Development Profits.’
Lee Gye-sam, the head of the Housing and Urban Affairs Bureau, attributed the decrease in the fund to the province’s difficult financial situation and the recent deterioration in the real estate market. He assured that the province will improve the problem through planned fund management in the future.
By Yeo Min-ji